This is the kind of thing that happens when you buy shit coins that are yet in exchange or the team barely release few of the coins and you can only sell that 10% given to you quarterly, that is crap and nonsense that people should avoid. Of course it is not the first time this type of cheating is happening in the crypto space. Although, I don't know of this story but it is not new non strange. During ICO days, many investors were cheated and scammed this way. Some launchpad too have gone this way with so much hope on investors but never fulfilled. The advise is invest in btc and if you want to invest in altcoins then buy BNB, sol or eth. Don't buy coins that are yet to be listed or coins you can't have in your non custodial wallet.